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E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
E Procurement
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E Procurement


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  • 1. E-Commerce: E-Procurement Anil Cheerla, Allen Kenney, Robyn King MBAD 251 April 8, 2009
  • 2. Definitions
    • In general, e-procurement refers to the electronic acquisition of goods and services for organizations.
    • “ E-procurement is using the Internet to operate the transactional aspects of requisitioning, authorizing, ordering, receipting and payment processes for the required services or products .”
    • (Source: The Chartered Institute of Purchasing & Supply)
  • 3. B2B evolution
  • 4. The Supply Chain
    • The supply chain process consists of a number of interrelated sub-processes and roles
      • Acquisition of materials from suppliers
      • Processing of a product or service
      • Packaging it and moving it to distributors and retailers
      • The eventual purchase of a product by the end consumer
  • 5.  
  • 6.  
  • 7.
    • Procurement Process
    Concept to Check Receipt of Goods/Services Supplier Communications Product & Process Development Requisition Creation Approval Cycle P.O. Generation Invoice eProcurement Payment Advance Ship Notice INVOICE INVOICE
  • 8. Web-based Procurement System
  • 9. Main Types of E-Procurement
      • e-sourcing–
      • The process and tools that electronically enable any activity in the sourcing process, such as quotation/tender submission and response, e-auctions, online negotiations, and spending analyses
      • e-tendering–
      • The “invitation” to participate in a tendering (bidding) system
      • e-informing–
      • Gathering and distributing purchasing information both from and to internal and external parties using Internet technology.
      • Web-based ERP–
      • Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology
      • e-MRO–
      • Indirect materials used in activities that support production
      • e-reverse auctioning - tendering or bidding model
  • 10. E-Procurement Benefits
    • Minimizing the purchases made from non-contract vendors
    • Expedited payment process and savings due to expedited payments
    • Improved invoice reconciliation and dispute resolution
  • 11. E-Procurement Benefits
    • Cost savings via streamlining
    • Control over maverick spending
    • Better information flow between buyers and suppliers
      • Increased buying power and better purchase price through aggregation
  • 12. Companies Engaged in E-Procurement
    • Honeywell
    • GlaxoSmithKline
    • Royal Dutch Shell
    • Sun Microsystems
    • Aeroxchange
      • Provides Internet-based infrastructure for aviation industry
  • 13. E-Procurement in action
  • 14. E-Procurement Providers
  • 15. Concerns
    • Are you introducing security and control risks by instituting new systems?
    • What are the transition costs of implementing an e-procurement system for purchasing?
    • Do new e-procurement systems work with suppliers’ technologies?
    • Do employees and managers have necessary skills and willingness to work with new e-commerce technology?